Alior Bank Sa · GPW:ALR
Alior Bank Sa — Q1 2016 Earnings Presentation
32 slides from Alior Bank Sa's earnings presentation, May 12, 2016
Slide 1: Alior Bank S.A. Q1 2016 results presentation
ALIOR BANK S.A. Q1 2016 results presentation May 12, 2016 1
Slide 2: Agenda
AGENDA • Highlights • Operational Performance • T-Mobile update • Outlook • Appendix 2
Slide 3: Highlights
HIGHLIGHTS Strong volume growth provides solid base for profitable growth. For the first time in Alior history organic loan volume growth in Q1 was stronger than in preceding quarter (up 20%) Capital position strengthened as planned by loan portfolio guarantee, further improvement by end of Q2’1
Slide 4: Agenda
AGENDA • Highlights • Operational Performance • T-Mobile update • Outlook • Appendix 4
Slide 5: Key Financials
KEY FINANCIALS (A/B)-1 (A/D)-1 M PLN Q1'16 Q1'15 Q4'15 Q3'15 Q2'15 (%) (%) A B C D E F G Net interest income 412 344 20 395 388 373 4 Net fee and commissions 87 93 -6 79 89 70 10 Trading result & other 80 83 -4 96 73 81 -17 Operating income 579 520 11 571 550 525 1 General Administrative Expenses -2
Slide 6: Loan Book
LOAN BOOK Loan book split in PLN m +19% +13% 32 738 30 907 321 Other business 439 Factoring 145 376 27 411 Investment 5 690 149 loans 555 5 482 4 331 43% 43% Working 43% 7 744 Capital Business 7 309 6 649 368 Other retail 366 900 Mortgage other 896 605 884 Mortgage 7 116 6 718 real estate 5 396 57%
Slide 7: Deposit Base
DEPOSIT BASE L/D = 91% in PLN m Retail +25% L/D=80% Deposits Loans 65% 57% +15% 23 293 21 409 Term, own 18 603 banking sec., other 14 294 18 544 Current 12 924 10 411 Loans 8 192 8 485 8 999 Q1'15 Q4'15 Q1'16 Q1'16 Corporate L/D=113% +36% Deposits Loans 35% 43% +33% Term, own 12 254 12 509 banking s
Slide 8: Credit Risk Overview
CREDIT RISK OVERVIEW NPL total (%) 13,2 Market avg.* 12,0 12,4 10,1 10,0 10,8 9,8 9,7 9,8 9,8 9,6 11,4 2,8 2,4 2,2 2,2 2,8 2,6 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Corporate Retail Mortgage Coverage ratio (%) Market avg.* 64 65 65 63 65 55 57 59 5
Slide 9: Net Interest Margin
NET INTEREST MARGIN Alior NIM development (%) NIM 4,6 4,3 2015 Q1'16 CoR -2,3 -2,1 NIM - CoR 2,3 2,2 2015 Q1'16 Slight decrease of NIM – CoR due to increased volume of AFS portfolio (+41% vs. Q4’15 and 141% vs Q1’15) ch. ch. in PLN m Q1'15 Q4'15 Q1'16 Q1'16/Q4'15 Q1'16/Q1'15 AFS portfolio 2 494 4 25
Slide 10: Fees and Commissions
FEES AND COMMISSIONS 93 Net F&C 89 87 79 70 145 140 F&C income 136 138 125 75 72 fees related to C/A, 65 75 loans, transfers 76 35 26 24 bancassurance 21 10 24 24 payment and credit 21 24 20 cards servicing 16 17 19 21 17 brokerage fees Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 -43 -54 -51 F&C expenses -56 -61
Slide 11: Capital Position
CAPITAL POSITION 13,5% 13,0% 12,8% 12,7% 12,5% 10,4% 10,2% 10,3% 10,6% 9,7% Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 TCR Tier-1 CAR calcultion includes the effect of guarantee and counter guarantee agreements concluded on March 31, 2016 11
Slide 12: Continuous focus on cost discipline makes Alior one of the most efficient institutions
ALIOR CONTINUOUS FOCUS ON COST DISCIPLINE MAKES IT ONE OF THE MOST EFFICIENT FINANCIAL INSTITUTIONS NATIONWIDE Q1’16 C/I (%) of Alior vs selected banks quoted on WSE 92,3 52,3 55,1 47,7 47,8 50,4 50,7 44,7 47,3 Bank 1 Bank 2 Bank 3 Alior Bank 5 Bank 6 Bank 7 Bank 8 Bank 9 12
Slide 13: Sizable Customer Base
SIZABLE CUSTOMER BASE Over 3 million clients provides for high cross sell potential Q1’16 Branches 1 874 Consumer Finance 520 T-Mobile 558 Total retail clients 2 952 Business clients 132 Total number of clients 3 084 13
Slide 14: Sales Network
SALES NETWORK 4th largest distribution network among Polish banks 2 158 975 890 831 533 476 461 439 411 395 334 242 Bank 1 Bank 2 Bank 3 Alior Bank 5 Bank 6 Bank 7 Bank 8 Bank 9 Bank 10 Bank 11 Bank 12 Alior as at the end of Q1’16, other banks as at the end of 2015 and number two if our partner netw
Slide 15: Agenda
AGENDA • Highlights • Operational Performance • T-Mobile update • Outlook • Appendix 15
Slide 16: Strong T-Mobile partnership in Poland effectively capturing profitable growth
STRONG T-MOBILE PARTNERSHIP IN POLAND EFFECTIVELY CAPTURING PROFITABLE GROWTH • 283 ths. customers acquired since launch in May’14 • Phone financing volume growth – total number of acquired customers is 50 ths. by end of Q1’16 - extension of the offer to new T-Mobile customers Maintaining strong cus
Slide 17: Alior Bank goes international – opening first foreign branch in Romania
ALIOR BANK GOES INTERNATIONAL – OPENING FIRST FOREIGN BRANCH IN ROMANIA First foreign branch of Alior Bank registered Entering one of largest economies in CEE, high growth potential for Alior Bank banking services, dynamic growth of smartphones Romania Extension of strategic partnership with D
Slide 18: Agenda
AGENDA • Highlights • Operational Performance • T-Mobile update • Outlook • Appendix 18
Slide 19: Going Forward: 2016 Outlook maintained
GOING FORWARD 2016 Outlook maintained 2016 consensus of PLN 322 m* NIM ~4,6% C/I below 48% excluding banking tax CoR ~2,3% Loan growth 2016 PLN 5 billion net *based on the following analysts forecasts: SG – February 8; Ipopema – February 8; Citi – February 19; JP Morgan – February 26. 19
Slide 20: Agenda
AGENDA • Highlights • Operational Performance • T-Mobile update • Outlook • Appendix 20
Slide 21: Income Statement Snapshot
INCOME STATEMENT SNAPSHOT in PLN m Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Interest income 556 596 617 630 663 Interest expense -212 -223 -228 -235 -251 Net interest income 344 373 388 395 412 Dividend 0 0 0 0 0 Fee and commission income 136 125 145 140 138 Fee and commission expense -43 -54 -56 -61 -51 Net f
Slide 22: Balance Sheet Snapshot
BALANCE SHEET SNAPSHOT 31 Mar’15 30 Jun’15 30 Sep’15 31 Dec’15 31 Mar’16 Cash and balances with Central Bank 1 378 1 815 1 348 1 750 666 Financial assets held for trading 525 427 365 391 360 Financial assets available for sale 2 494 2 714 4 016 4 253 6 008 Hedging derivatives 120 49 123 140 161 Rece
Slide 23: Shareholding
SHAREHOLDING Largest free float among Polish financials institutions 21.2m shares - 29,2% PZU S.A. & PZU Życie S.A. 5.1m shares - 7,0% 42,4m shares – 58,3% Genesis Asset Managers LLP Market free float 4.0m shares - 5,5% Aviva OFE On October 12, 2015 PZU bought the first tranche of shares from Carlo
Slide 24: New Loans Sales in Retail & SME
NEW LOANS SALES IN RETAIL & SME Retail loans (new production per quarter) 2 270 2 273 2 010 Other retail 44 49 1 681 1 809 1 641 46 Mortgages for 1 489 66 1 530 529 459 real estate 1 374 73 90 55 556 61 74 546 629 423 562 526 342 1 697 1 765 Cash loans 1 407 971 992 1 062 1 114 990 949 Q1'14 Q2'14 Q
Slide 25: Employees
EMPLOYEES FTEs 6 504 6 738 Meritum 7 098 651 6 361 6 526 714 3 697 3 524 3 655 4 251 3 928 Outlets 2 871 Headquaters 2 807 2 837 2 133 2 159 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 25
Slide 26: Continued Growth of Market Share
CONTINUED GROWTH OF MARKET SHARE Deposits MARKET SHARE Loans 3,9% 3,6% 3,7% 3,4% 3,2% 3,3% Q1'15 Q4'15 Q1'16 Q1'15 Q4'15 Q1'16 Alior’s deposits as well as gross loans according to published financial statements. Deposits Quarterly growth (%) Loans Total Retail Corporate Total Retail Corporate ALIOR
Slide 27: Polish Macro Outlook
POLISH MACRO OUTLOOK GDP growth (% yoy) Investments and private consumption (% yoy) 10,6 Investments Private 4,50 consumption 3,90 7,1 6,8 3,40 3,40 3,2 3,30 2,6 4,6 0,8 0,9 4,1 3,6 0,2 2,5 1,90 1,60 -2,4 -1,8 2010 2011 2012 2013 2014 2015 2016F 2010 2011 2012 2013 2014 2015 2016F End of period End
Slide 28: Polish Macro Outlook
POLISH MACRO OUTLOOK NBP reference rate (%) WIBOR 3M (%) 4,50 4,99 4,25 4,13 3,50 3,95 2,50 2,71 2,00 2,06 1,50 1,50 1,72 1,70 2010 2011 2012 2013 2014 2015 2016F 2010 2011 2012 2013 2014 2015 2016F End of period End of period FX rate (EUR/PLN) Fiscal policy (% of GDP) 4,46 57,2 30 60 56,2 55,6 25 5
Slide 29: Polish Banking Sector – Growth of the Main Balance Sheet Figures
POLISH BANKING SECTOR – GROWTH OF THE MAIN BALANCE SHEET FIGURES Assets Loans +3,9% +2,2% +8,7% +7,2% 1 609 1 600 1 631 1 569 1 577 1 538 1 532 1 108 1 105 1 097 1 493 1 055 1 039 1 074 1 090 1 444 1 002 1 041 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15
Slide 30: Polish Banking Sector – Main P&L Lines Performance
POLISH BANKING SECTOR – MAIN P&L LINES PERFORMANCE NII NFC Result on banking activity +5,9 -5,0 -2,0 14,5 14,4 14,2 9,3 3,3 3,4 3,4 3,3 13,4 13,7 8,7 9,0 9,2 3,1 8,4 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 X - CHANGE VS. Q1’15 (%) Expenses* Net impai
Slide 31: Contact Details
CONTACT DETAILS Please direct all inquiries to: relacje.inwestorskie@alior.pl +48 22 417 3860 IR unit head: Piotr Bystrzanowski piotr.bystrzanowski@alior.pl 31
Slide 32: Disclaimer
DISCLAIMER This document has been prepared by Alior Bank S.A. (the “Bank”) solely for use at the Presentation. Any forward looking statements concerning future economic and financial performance of the Company contained in this Presentation are based on Financial Statement of the Bank for Q1 2016. B